This Act comes into effect on January 6, 2003.

The provisions of Article 10, paragraph (1) of the Income Tax Act as amended by the provisions of Article 13 (hereinafter referred to as "the new Income Tax Act" in this Article) (limited to the parts concerning items (ii) and (iii)) apply to interest or distributions of proceeds that an individual prescribed in that paragraph is to be paid on or after the effective date from Jointly Managed Trusts or similar prescribed in item (ii) of that paragraph or Securities prescribed in item (iii) of that paragraph (excluding, as regards those Jointly Managed Trusts or similar or Securities that pertain to anything set forth in the items of paragraph (3) that has been entered or recorded in the transfer acceptance book prescribed in the provisions referred to in those items, pursuant to those provisions, after the day on which five years have elapsed from the effective date, those to be paid on or after the date of that entry or recording), and the provisions then in force continue to govern interest or distributions of proceeds that an individual prescribed in Article 10, paragraph (1) of the Income Tax Act prior to the amendment by the provisions of Article 13 (hereinafter referred to as "the former Income Tax Act" in this Article) is to be paid before the effective date from Jointly Managed Trusts or similar prescribed in item (ii) of that paragraph or Securities prescribed in item (iii) of that paragraph.

As regards interest or distributions of proceeds from Jointly Managed Trusts or similar prescribed in Article 10, paragraph (1), item (ii) of the former Income Tax Act or Securities prescribed in item (iii) of that paragraph, for which the resolution or decision of issuance, the issuance of bonds, or the creation of the trust took place by the acceptance end date prescribed in Article 10 of the Supplementary Provisions of the Act on Book-Entry Transfer of Corporate Bonds, etc. as amended by Article 1 (hereinafter referred to as the "new Book-Entry Transfer Act") (or, for national government bonds, the date specified by Cabinet Order as prescribed in Article 19 of the Supplementary Provisions of the new Book-Entry Transfer Act; hereinafter referred to as the "book-entry changeover date" in this Article and the following Article), and which are to be paid on or after the effective date (excluding those to which the provisions of Article 10, paragraph (1) of the new Income Tax Act apply, and limited to those corresponding to a special calculation period (meaning a calculation period for interest or distributions of proceeds that ends by the day on which five years have elapsed from the effective date; the same applies hereinafter in this Article and the following Article)), the provisions of Article 10 of the former Income Tax Act (limited to the parts concerning paragraph (1), item (ii) or (iii)) remain in force. In such a case, during the period from the date specified in Article 1, item (iii) of the Supplementary Provisions of the Act Partially Amending the Act on Special Measures Concerning Taxation, etc. (Act No. 15 of 2002) until the day before the date on which the Postal Service Privatization Act (Act No. 97 of 2005) comes into effect, the phrase "an elderly person or other eligible person who" in Article 10, paragraph (1) of the former Income Tax Act is deemed to be replaced with "a Person with a Disability or other eligible person (meaning a Person with a Disability or other eligible person as prescribed in Article 9-2, paragraph (1) (Nontaxability of Interest Income from Postal Savings Held by Persons with Disabilities and Other Eligible Persons) of the Income Tax Act; the same applies hereinafter in this Article) who", the phrase "or Securities company" is deemed to be replaced with ", financial instruments business operator, or registered financial institution", the phrase "beneficiary certificates" is deemed to be replaced with "beneficial interests", the phrase "to an elderly person or other eligible person" is deemed to be replaced with "to a Person with a Disability or other eligible person", the phrase "or distributions of proceeds" is deemed to be replaced with ", distributions of proceeds, or dividends of surplus (meaning dividends of surplus as prescribed in Article 24, paragraph (1) (Dividend Income); the same applies hereinafter in this item)", and the phrase "interest or distributions of proceeds corresponding" is deemed to be replaced with "interest, distributions of proceeds, or dividends of surplus corresponding"; the phrase "elderly person or other eligible person" in paragraph (3) of that Article is deemed to be replaced with "Person with a Disability or other eligible person"; and the phrase "copy of the certificate of residence" in paragraph (5) of that Article is deemed to be replaced with "proof of physical disability passbook issued pursuant to Article 15, paragraph (4) (Issuance of Proof of Physical Disability Passbooks) of the Act on Welfare of Physically Disabled Persons", and the phrase "elderly person or other eligible person" in that paragraph is deemed to be replaced with "Person with a Disability or other eligible person"; and on and after the date on which the Postal Service Privatization Act comes into effect, the phrase "an elderly person or other eligible person who" in paragraph (1) of that Article is deemed to be replaced with "a Person with a Disability or other eligible person (meaning a Person with a Disability or other eligible person as prescribed in Article 10, paragraph (1) (Nontaxability of Interest Income from Small Amounts of Deposits Held by Persons with Disabilities and Other Eligible Persons) of the Income Tax Act as amended by the provisions of Article 78 (Partial Amendment of the Income Tax Act) of the Act on the Arrangement of Related Acts for the Enforcement of the Postal Service Privatization Act, etc. (Act No. 102 of 2005); the same applies hereinafter in this Article) who", the phrase "or Securities company" is deemed to be replaced with ", financial instruments business operator, or registered financial institution", the phrase "or postal savings or other" is deemed to be replaced with "or other", the phrase "beneficiary certificates" is deemed to be replaced with "beneficial interests", the phrase "to an elderly person or other eligible person" is deemed to be replaced with "to a Person with a Disability or other eligible person", the phrase "or distributions of proceeds" is deemed to be replaced with ", distributions of proceeds, or dividends of surplus (meaning dividends of surplus as prescribed in Article 24, paragraph (1) (Dividend Income); the same applies hereinafter in this item)", and the phrase "interest or distributions of proceeds corresponding" is deemed to be replaced with "interest, distributions of proceeds, or dividends of surplus corresponding"; the phrase "elderly person or other eligible person" in paragraph (3) of that Article is deemed to be replaced with "Person with a Disability or other eligible person"; and the phrase "copy of the certificate of residence" in paragraph (5) of that Article is deemed to be replaced with "proof of physical disability passbook issued pursuant to Article 15, paragraph (4) (Issuance of Proof of Physical Disability Passbooks) of the Act on Welfare of Physically Disabled Persons", and the phrase "elderly person or other eligible person" in that paragraph is deemed to be replaced with "Person with a Disability or other eligible person".

If any of the things set forth in the following items which, since the day on which the special calculation period for the interest or distributions of proceeds begins (or, if the Securities (meaning Securities prescribed in Article 10, paragraph (1), item (iii) of the former Income Tax Act) were purchased partway through that special calculation period, the date of that purchase; hereinafter referred to as the "start date" in this Article and the following Article), have continuously been deposited for custody, registered, or placed in trust as prescribed in Article 10, paragraph (1), item (ii) or (iii) of the former Income Tax Act, which remains in force pursuant to the provisions of the preceding paragraph, are, during the period from the start date of that special calculation period to the last day of that special calculation period, deemed pursuant to the provisions referred to in the relevant item to be the thing specified in that item and entered or recorded in the transfer account book prescribed in Article 10, paragraph (1), item (ii) or (iii) of the new Income Tax Act, then, for that special calculation period, the things specified in those items in connection with that interest or those distributions of proceeds are deemed to have been continuously entered or recorded in that transfer account book as prescribed in item (ii) or (iii) of that paragraph since the start date of that special calculation period, and the provisions of that paragraph apply.

The provisions of Article 11, paragraph (4) of the new Income Tax Act apply to the portion pertaining to interest and similar income prescribed in that paragraph on public and corporate bonds or similar prescribed in that paragraph that a Domestic Corporation or Foreign Corporation, or the trustee of a charitable trust, prescribed in that paragraph is to be paid on or after the effective date (excluding, as regards those public and corporate bonds or similar that pertain to anything set forth in the items of the preceding paragraph that has been entered or recorded in the transfer acceptance book prescribed in the provisions referred to in those items, pursuant to those provisions, after the day on which five years have elapsed from the effective date, the portion to be paid on or after the date of that entry or recording), and the provisions then in force continue to govern the portion pertaining to interest and similar income prescribed in Article 11, paragraph (4) of the former Income Tax Act on public and corporate bonds or similar prescribed in that paragraph that a Domestic Corporation or Foreign Corporation, or the trustee of a charitable trust, prescribed in that paragraph is to be paid before the effective date.

As regards the portion pertaining to interest and similar income prescribed in Article 11, paragraph (4) of the former Income Tax Act on public and corporate bonds or similar prescribed in that paragraph, for which the resolution or decision of issuance, the issuance of bonds, or the creation of the trust took place by the book-entry changeover date, that is to be paid on or after the effective date (excluding any portion to which the provisions of Article 11, paragraphs (1) through (3) of the new Income Tax Act apply, and limited to the portion corresponding to a special calculation period), the provisions of Article 11 of the former Income Tax Act (limited to the part concerning paragraph (4)) remain in force. In such a case, on and after the date on which the Act Partially Amending the Income Tax Act, etc. (Act No. 8 of 2003) comes into effect, the phrase "charitable trust prescribed" in paragraph (3) of that Article is deemed to be replaced with "charitable trust prescribed, or a participant protection trust prescribed in Article 2, paragraph (11) (Definitions) of the Act on Book-Entry Transfer of Corporate Bonds and Shares", the phrase "that charitable trust" is deemed to be replaced with "that charitable trust or that participant protection trust", and the phrase "charitable trust" in paragraph (4) of that Article is deemed to be replaced with "charitable trust or participant protection trust"; and on and after January 1, 2004, the phrase "beneficiary certificates specified by Cabinet Order or investment units prescribed in Article 2, paragraph (21) (Definitions) of the Act on Investment Trusts and Investment Corporations that are specified by Cabinet Order" in paragraph (1) of that Article is deemed to be replaced with "beneficial interests specified by Cabinet Order", the phrase "or distributions of proceeds or dividends of profits" is deemed to be replaced with ", distributions of proceeds, or dividends of surplus prescribed in Article 24, paragraph (1) (Dividend Income)", the phrase "Trust Act" in paragraph (3) of that Article is deemed to be replaced with "Act on Charitable Trust", and the phrase "Article 66" is deemed to be replaced with "Article 1".

If any of the things set forth in the items of paragraph (3) which, since the start date of the special calculation period for the interest and similar income (meaning interest and similar income prescribed in Article 11, paragraph (4) of the former Income Tax Act), have continuously been deposited for custody or registered as provided in paragraph (4) of that Article, which remains in force pursuant to the provisions of the preceding paragraph, are, during the period from the start date of that special calculation period to the last day of that special calculation period, deemed pursuant to the provisions referred to in the relevant item to be the thing specified in that item and entered or recorded in the transfer account book prescribed in Article 11, paragraph (4) of the new Income Tax Act, then, for that special calculation period, the things specified in those items in connection with that interest and similar income are deemed to have been continuously entered or recorded in that transfer account book as provided in that paragraph since the start date of that special calculation period, and the provisions of that paragraph apply.

The provisions then in force continue to govern the application of penal provisions to conduct engaged in before this Act (or, for the provisions set forth in the items of Article 1 of the Supplementary Provisions, those provisions; the same applies hereinafter in this Article) comes into effect and to conduct engaged in after this Act comes into effect in the cases in which prior laws are to continue to govern pursuant to the provisions of these Supplementary Provisions.

Beyond what is provided for in these Supplementary Provisions, transitional measures necessary in connection with the enforcement of this Act are specified by Cabinet Order.